Shailesh Kapoor, head of Indian media consulting firm Ormax, says that profitability challenges and consolidation are trends to look out for in India‘s complex streaming market.
Kapoor notes that streaming penetration remains limited, with paid content reaching only 10-14% of the 1.4 billion population. “The general belief is that this number will go up, leading to scale and profitability,” he explains, while cautioning about slowed growth since the pandemic.
Cost remains a hurdle, Kapoor says. “Indians are not used to paying for content. In general, TV has been very low cost in India for years now. And in streaming, there are two costs, the data cost, and then there is a subscription cost. So, it is a double cost structure. Many Indians do not fully understand why they should be paying for content when so much content is available for free on TV and on YouTube,” Kapoor said.
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